CITGO invests $310 million in Lake Charles Refinery upgrade
CITGO has announced a significant investment of $310 million to enhance its Lake Charles Refinery's operational capabilities, underscoring the company's commitment to maintaining long-term competitiveness and contributing to regional economic stability.
The Depentanizer Project, a major upgrade to the facility, will introduce new equipment and facilities designed to improve naphtha upgrading processes. By converting lower-value streams into higher-value gasoline components, the project aims to increase the refinery's flexibility and enhance CITGO's ability to meet ongoing U.S. demand for reliable transportation fuels.
"Through this investment, CITGO is reinforcing the strategic importance of the Lake Charles Refinery to our company, our customers, and the broader U.S. energy market," stated Edgar Rincon, CITGO's Executive Vice President and Chief Operating Officer.
For Southwest Louisiana, the investment is more than just an operational upgrade. It ensures the long-term future of the Lake Charles Refinery, supports the existing workforce, and creates additional contract work during the construction phase. The project also fosters opportunities for local suppliers and service providers within the region's energy economy.
Sterling Neblett, CITGO's Lake Charles Refinery Vice President and General Manager, noted, "For generations, the Lake Charles Refinery has been a cornerstone of Southwest Louisiana's economy and identity. This project exemplifies our confidence in the refinery's future and our dedication to supporting the people, businesses, and communities it serves."
The Lake Charles Refinery, which commenced operations in 1944, has played a pivotal role in the U.S. refining landscape. It has evolved from a facility that supported the country's aviation fuel needs during World War II to CITGO's largest refinery, producing a range of products used by consumers and industries nationwide. Strategically located along the Calcasieu Ship Channel, the refinery benefits from its ability to process diverse crude oils and distribute refined products through pipelines, marine access, and other logistics channels.
Construction on the Depentanizer Project is anticipated to be completed by 2029. In the meantime, CITGO plans to collaborate closely with employees, contractors, and local stakeholders as engineering, construction, and commissioning activities progress.
The Lake Charles Refinery, with its three sister facilities in Louisiana and Illinois, is part of CITGO's extensive refining network. The company, known for its robust operations, owns and operates three refineries, 43 active terminals, eight pipelines, and three lubricants blending and packaging plants. With a combined crude capacity of approximately 829,000 barrels per day and a workforce of around 3,300 employees, CITGO ranks as the fifth-largest and one of the most complex independent refiners in the United States.